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Computer This article will describe the primary components of an AIS and some of its real-life applications. Financial Statements Components of an Accounting Information System Accounting information systems generally consist of six main parts: People The people in an AIS are simply the system users.
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An AIS helps the different departments within a company work together. For example, management can establish sales goals for which staff can then order the appropriate amount of inventory.
The inventory order notifies the accounting department of a new payable. When sales are made, sales people can enter customer orders, accounting can invoice customers, the warehouse can assemble the order, the shipping department can send it off, and the accounting department gets notified of a new receivable.
Managers can also see inventory costs, shipping costs, manufacturing costs and so on. With a well-designed AIS, everyone within an organization who is authorized to do so can access the same system and get the same information.
An AIS also simplifies getting information Accounting information systems essay people outside of the organization when necessary. Find out more on accounting regulations; check out Financial History: The Rise of Modern Accounting.
The AIS should be designed to meet the needs of the people who will be using it. The system should also be easy to use and should improve, not hinder, efficiency. Procedure and Instructions The procedure and instructions of an AIS are the methods it uses for collecting, storing, retrieving and processing data.
These methods will be both manual and automated, and the data can come from both internal sources e. Procedures and instructions must be followed consistently to be effective. The Hottest Penny Stocks! To store information, an AIS must have a database structure such as structured query language SQLa computer language commonly used for databases.
The AIS will also need various input screens for the different types of system users and different types of data entry, as well as different output formats to meet the needs of different users and different types of information.
Does a job as a financial sleuth sound interesting to you? The data included in an AIS will depend on the nature of the business, but it may consist of the following: For the data to be useful, it must be complete, correct and relevant.
On the other hand, examples of data that would not go into an AIS include memos, correspondence, presentations and manuals. Before there were computers, AISs were manual, paper-based systems, but today, most companies are using computer software as the basis of the AIS.
Quality, reliability and security are key components of effective AIS software. Managers rely on the information it outputs to make decisions for the company, and they need high-quality information to make sound decisions. AIS software programs can be customized to meet the unique needs of different types of businesses.
The system could even be outsourced to a specialized company. For publicly traded companies, no matter what software program and customization options the business chooses, Sarbanes-Oxley regulations will dictate the structure of the AIS to some extent.
This is because SOX regulations establish internal controls and auditing procedures that public companies must comply with. Information Technology Infrastructure Information technology infrastructure is just a fancy name for the hardware used to operate the accounting information system.
Most of these hardware items are things a business would need to have anyway — they include personal computers, servers, printers, surge protectors, routers, storage media, and possibly a backup power supply. In addition to cost, factors to consider in selecting hardware include speed, storage capability and whether it can be expanded and upgraded.
Thinking about becoming an accountant? Perhaps most importantly, the hardware selected for an AIS must be compatible with the intended software. Ideally, it would be not just compatible, but optimal, a clunky system will be much less helpful than a speedy one.
One way businesses can easily meet hardware and software compatibility requirements is by purchasing a turnkey system that includes both the hardware and the software that the business needs. Purchasing a turnkey system means, theoretically, that the business will get an optimal combination of hardware and software for its AIS.
A good AIS should also include a plan for maintaining, servicing, replacing and upgrading components of the hardware system, as well as a plan for the disposal of broken and outdated hardware so that sensitive data is completely destroyed.
Internal Controls The internal controls of an AIS are the security measures it contains to protect sensitive data. These can be as simple as passwords or as complex as biometric identification.Accounting Information Systems Essays: Over , Accounting Information Systems Essays, Accounting Information Systems Term Papers, Accounting Information Systems Research Paper, Book Reports.
ESSAYS, term and research papers available for UNLIMITED access. accounting information systems American Guitar Company manufactures two different high quality acoustic guitars for retailers: beginner model and professional model. The company has two service departments: the maintenance department and the power department, and two manufacturing departments: the construction department and the .
Accounting Information Systems Essay Words | 4 Pages. Accounting Information Systems Laquasia Fields XACC/ May 26, Cito Vanegas Every Company or Business has different Information Systems that the use to run the Company.
The field of accounting information systems (AIS) combines that of accounting with the much newer field of information systems, systems that include people, processes, procedures, and information technology in a flexible resource used to handle data.
Information Technology Infrastructure Information technology infrastructure is just a fancy name for the hardware used to operate the accounting information system.
Most of these hardware items are things a business would need to have anyway – they include personal computers, servers, printers, surge protectors, routers, storage media, and.
Oct 08, · The essay gives a detailed information on how computer assisted auditing technique can be used in the validation of data and system integrity within an accounting information system, the functions of audit productivity and an account of the audit productivity software used in the system .